CARMEL, Ind., Feb. 7, 2017 /PRNewswire/ -- CNO Financial
Group, Inc. (NYSE: CNO) today announced net income for the
fourth quarter of 2016 of $234.2
million, or $1.34 per diluted
share, compared to $137.3 million, or
73 cents per diluted share, in the
fourth quarter of 2015. For the full year 2016, CNO reported
net income of $358.2 million, or
$2.01 per diluted share, compared to
$270.7 million, or $1.39 per diluted share in 2015.
CNO also announced fourth quarter of 2016 operating income (1)
of $84.9 million, or 49 cents per diluted share, compared to
$97.0 million, or 52 cents per diluted share, in the fourth quarter
of 2015. For the full year 2016, CNO reported operating
income (1) of $262.5 million, or
$1.47 per diluted share, compared to
$274.7 million, or $1.41 per diluted share in 2015.
"Our results again demonstrated the strength of our company,
including solid earnings, growth in book value, capital and
liquidity," said Ed Bonach, CEO of
CNO Financial. "We effectively executed on a number of key
initiatives and grew the enterprise with meaningful increases in
first year and total collected premiums while expanding our
customer reach."
Fourth Quarter 2016 Highlights
- First year collected premiums: $374.6 million, up 16% from 4Q15
- Total collected premiums: $951.3
million, up 8% from 4Q15
- New annualized premium ("NAP") (2): $106.7 million, down 4% from 4Q15
- Policies in-force of 3.5 million (including third party
policies in-force), up 1% from 4Q15
- Net income per diluted share: $1.34 in 4Q16 compared to 73 cents in 4Q15
- Net operating income (1) per diluted share: 49 cents in 4Q16 compared to 52 cents in 4Q15
- Book value per common share increased to $25.82 from $22.49
at 4Q15
- Book value per diluted share, excluding accumulated other
comprehensive income (loss) (3), increased to $22.02 from $20.05
at 4Q15
- Unrestricted cash and investments held by our holding company
were $264 million at
December 31, 2016, compared to $189
million at September 30,
2016
Full Year 2016 Highlights
- First year collected premiums: $1,344.8 million, up 12% from 2015
- Total collected premiums: $3,610.6
million, up 6% from 2015
- NAP (2): $416.6 million,
down 2% from 2015
- Net income per diluted share: $2.01 in 2016 compared to $1.39 in 2015
- Net operating income (1) per diluted share: $1.47 in 2016 compared to $1.41 in 2015
- Common stock repurchases of $203
million and dividends of $55
million in 2016
- Consolidated risk-based capital ratio was estimated at 459% at
December 31, 2016, reflecting estimated statutory operating
earnings of $286 million (including
approximately $110 million loss on
the recapture of long-term care business), compared to 449% at
December 31, 2015
Quarterly Segment Operating Results
|
Three months
ended
|
|
December
31,
|
|
2016
|
|
2015
|
|
(Dollars in
millions,
except per share data)
|
|
Adjusted EBIT
(4):
|
|
|
|
|
Bankers
Life
|
$
|
138.9
|
|
|
$
|
121.2
|
|
|
Washington
National
|
29.9
|
|
|
32.3
|
|
|
Colonial
Penn:
|
|
|
|
|
In-force business
(5)
|
13.4
|
|
|
14.8
|
|
|
New business
(5)
|
(8.8)
|
|
|
(8.1)
|
|
|
Total Colonial
Penn
|
4.6
|
|
|
6.7
|
|
|
Long-term care in
run-off
|
(3.9)
|
|
|
—
|
|
|
Adjusted EBIT from
business segments
|
169.5
|
|
|
160.2
|
|
|
Corporate Operations,
excluding corporate interest expense
|
(23.0)
|
|
|
(.7)
|
|
|
Adjusted
EBIT
|
146.5
|
|
|
159.5
|
|
|
Corporate interest
expense
|
(11.5)
|
|
|
(11.3)
|
|
|
Operating earnings
before taxes
|
135.0
|
|
|
148.2
|
|
|
Tax expense on
operating income
|
50.1
|
|
|
51.2
|
|
|
Net operating income
(1)
|
84.9
|
|
|
97.0
|
|
|
Net realized
investment gains (losses) (net of related amortization)
|
(14.8)
|
|
|
(15.8)
|
|
|
Fair value changes in
embedded derivative liabilities (net of related
amortization)
|
46.2
|
|
|
14.6
|
|
|
Fair value changes
related to agent deferred compensation plan
|
15.1
|
|
|
15.1
|
|
|
Other
|
(.8)
|
|
|
(1.8)
|
|
|
Non-operating income
before taxes
|
45.7
|
|
|
12.1
|
|
|
Income tax expense
(benefit):
|
|
|
|
|
On non-operating
income
|
16.0
|
|
|
4.3
|
|
|
Valuation allowance
for deferred tax assets and other tax items
|
(119.6)
|
|
|
(32.5)
|
|
|
Net non-operating
income
|
149.3
|
|
|
40.3
|
|
|
Net income
|
$
|
234.2
|
|
|
$
|
137.3
|
|
|
|
|
|
|
Per diluted
share:
|
|
|
|
|
Net operating
income
|
$
|
.49
|
|
|
$
|
.52
|
|
|
Net realized
investment gains (losses) (net of related amortization and
taxes)
|
(.06)
|
|
|
(.05)
|
|
|
Fair value changes in
embedded derivative liabilities (net of related amortization and
taxes)
|
.17
|
|
|
.05
|
|
|
Fair value changes
related to agent deferred compensation plan (net of
taxes)
|
.06
|
|
|
.05
|
|
|
Valuation allowance
for deferred tax assets and other tax items
|
.68
|
|
|
.17
|
|
|
Other
|
—
|
|
|
(.01)
|
|
|
Net income
|
$
|
1.34
|
|
|
$
|
.73
|
|
The following table summarizes the financial impact of
significant items on our 4Q16 net operating income (dollars in
millions, except per share
amounts):
|
Three months
ended
|
|
December 31,
2016*
|
|
Actual
results
|
|
Significant
items
|
|
Excluding
significant
items
|
|
Net Operating Income
(1):
|
|
|
|
|
|
|
Bankers
Life
|
$
|
138.9
|
|
|
$
|
(48.2)
|
|
|
$
|
90.7
|
|
|
Washington
National
|
29.9
|
|
|
—
|
|
|
29.9
|
|
|
Colonial
Penn
|
4.6
|
|
|
2.5
|
|
|
7.1
|
|
|
Long-term care in
run-off
|
(3.9)
|
|
|
2.6
|
|
|
(1.3)
|
|
|
Adjusted EBIT from
business segments
|
169.5
|
|
|
(43.1)
|
|
|
126.4
|
|
|
Corporate Operations,
excluding corporate interest expense
|
(23.0)
|
|
|
5.5
|
|
|
(17.5)
|
|
|
Adjusted EBIT
(4)
|
146.5
|
|
|
(37.6)
|
|
|
108.9
|
|
|
Corporate interest
expense
|
(11.5)
|
|
|
—
|
|
|
(11.5)
|
|
|
Operating earnings
before taxes
|
135.0
|
|
|
(37.6)
|
|
|
97.4
|
|
|
Tax expense on
operating income
|
50.1
|
|
|
(13.5)
|
|
|
36.6
|
|
|
Net operating
income
|
$
|
84.9
|
|
|
$
|
(24.1)
|
|
|
$
|
60.8
|
|
|
|
|
|
|
|
|
Net operating income
per diluted share
|
$
|
.49
|
|
|
$
|
(.14)
|
|
|
$
|
.35
|
|
The significant items in 4Q16 included: (i) adjustments arising
from our comprehensive annual actuarial review of assumptions
including $45.8 million of favorable
impacts in the Bankers Life segment, $2.5
million of unfavorable impacts in the Colonial Penn segment
and $2.6 million of unfavorable
impacts in the Long-term care in run-off segment; (ii) a
$5.5 million increase to legal
reserves in Corporate Operations related to legacy business of our
predecessor; and (iii) the $2.4
million release of long-term care reserves (net of the
reduction in insurance intangibles) due to the impact of
policyholder actions following rate increases in the Bankers Life
segment.
* See page 10 for the table of Net Operating Income
Excluding Significant Items for the three months ended December 31, 2015.
Segment Results
Bankers Life markets and distributes a variety of
insurance products to middle-income Americans at or near retirement
through a dedicated field force of career agents. First year
collected premiums in 4Q16 were $342.1
million, up 18 percent from 4Q15. First year collected
premiums in 2016 were $1,211.8
million, up 14 percent from 2015. Such increases
primarily reflect an increase in premiums from annuity
products. NAP in 4Q16 was $65.0
million, down 6 percent from 4Q15. NAP results for the
quarter primarily reflect lower sales of Medicare supplement and
life products, partially offset by higher sales of annuity
products. NAP for the year ended December 31, 2016, was $241.0 million, down 4 percent from 2015.
New agent recruitment was down 12 percent in 4Q16, but up 3 percent
for the year. However, average producing agents were down 5 percent
from 4Q15, primarily due to lower first year agent retention during
the second half of 2016.
Total collected premiums were up 9 percent in 4Q16 compared to
4Q15. Total collected premiums in 2016 were $2,666.4 million, up 7 percent from 2015.
Annuity account values, on which spread income is earned, increased
3 percent to $7.8 billion in 4Q16
compared to 4Q15, driven by strong sales and persistency.
Total policies in-force increased slightly in 2016; third party
policies in-force increased 6 percent.
Pre-tax operating earnings in 4Q16 compared to 4Q15 were up
$17.7 million, or 15 percent.
Pre-tax operating earnings in 4Q16 of $138.9
million included $45.8 million
of positive impacts from our comprehensive annual actuarial review
including the net impact of changes to spread and persistency
assumptions related to fixed index annuities. Pre-tax
operating earnings in 4Q15 of $121.2
million included $25.8 million
of positive impacts from our comprehensive annual actuarial review
including the net impact from changes in assumptions related to
mortality and the spread earned on fixed index annuities.
The long-term care interest-adjusted benefit ratio was 76.0
percent in 4Q16, compared to 79.6 percent in 4Q15. The 4Q16
and 4Q15 ratios were favorably impacted by $2.7 million and $7
million, respectively, of one-time reserve releases related
to policyholder decisions to surrender or reduce coverage following
rate increases. The 4Q16 long-term care interest-adjusted
benefit ratio excluding the favorable reserve releases related to
rate increases was 78.4 percent compared to 85.5 percent in
4Q15. The 4Q16 interest-adjusted benefit ratio reflects the
favorable development of prior period claim liabilities and
favorable incurred claims in the quarter. We currently expect
the long-term care interest-adjusted benefit ratio to be in the
range of 77 percent to 82 percent during 2017, excluding the
reserve-related impacts of rate increase actions. The lower
interest-adjusted benefit ratio guidance in 2017 reflects favorable
margins and the outcome of our year-end actuarial review. We
expect rate increases will have less of an impact on the
interest-adjusted benefit ratio in 2017 than in 2016.
Pre-tax operating earnings in 4Q16 reflected a Medicare
supplement benefit ratio of 71.2 percent, slightly higher than the
4Q15 ratio of 70.8 percent. We currently expect the Medicare
supplement benefit ratio to be in the range of 71 percent to 74
percent during 2017.
Washington National markets and distributes supplemental
health and life insurance to middle-income consumers through a
wholly-owned subsidiary and independent insurance agencies.
First year collected premiums in 4Q16 were $19.3 million, down 4 percent from 4Q15.
First year collected premiums in 2016 were $78.2 million, down 2 percent from 2015.
NAP in 4Q16 was $27.0 million, up 3
percent from 4Q15, reflecting higher sales of supplemental health
products. NAP for the year ended December 31, 2016 was $99.2 million, down 1 percent from 2015.
NAP from sales of products in the worksite market in 4Q16 was
$11.0 million, up 5 percent from
4Q15. The average number of producing agents was up 8 percent
compared to 4Q15, reflecting strong recruiting and retention.
Total collected premiums from the segment's supplemental health
block were up 3 percent in 4Q16 compared to 4Q15. Total
collected premiums from this block in 2016 were $565.5 million, up 4 percent from 2015.
Pre-tax operating earnings in 4Q16 compared to 4Q15 were down
$2.4 million. Pre-tax operating
earnings in 4Q15 included $1 million
of positive impacts from our comprehensive annual actuarial review
of assumptions, primarily related to fixed index annuities.
The supplemental health interest-adjusted benefit ratio was 57.0
percent and 57.5 percent in 4Q16 and 4Q15, respectively. We
currently expect the supplemental health interest-adjusted benefit
ratio to be in the range of 58 percent to 61 percent during
2017.
Colonial Penn markets primarily graded benefit and
simplified issue life insurance directly to customers through
television advertising, direct mail, the internet and
telemarketing. First year collected premiums in 4Q16 were
$13.2 million, up 2 percent from
4Q15. First year collected premiums in 2016 were $54.8 million, up 6 percent from 2015. Such
increases reflect strong sales in recent periods. NAP in 4Q16
was $14.7 million, down 6 percent
from 4Q15, reflecting lower lead volume primarily due to reduced
television advertising as a result of the elections. NAP for
the year ended December 31, 2016, was
$76.4 million, up 3 percent from
2015.
Total collected premiums were up 6 percent in 4Q16 compared to
4Q15. Total collected premiums in 2016 were $280.2 million, up 7 percent from 2015, and
reflected both recent sales activity and steady persistency.
Pre-tax operating earnings in 4Q16 of $4.6 million were down $2.1 million compared to 4Q15. Pre-tax
operating earnings in 2016 were $1.7
million. In-force adjusted EBIT in 4Q16 was
$13.4 million, down 9 percent from
4Q15. Pre-tax operating earnings and in-force adjusted EBIT
in 4Q16 were reduced by $2.5 million
related to the impact of loss recognition on a closed block of
payout annuities resulting from changes in long-term interest rates
and mortality assumptions. Full year 2016 in-force adjusted
EBIT was $54.4 million, up 1 percent
from 2015.
Recognizing the accounting standard related to deferred
acquisition costs, the amount of our investment in new business
during a particular period will have a significant impact on this
segment's results. We expect this segment to report earnings
in 2017 in the range of $5 million to $15
million, but because of the seasonality of advertising
spend, we expect a loss in the $1 million to
$3 million range in 1Q17.
Long-term care in run-off is a new segment for the
long-term care block that was recaptured in conjunction with the
termination of the reinsurance agreements with Beechwood Re Ltd. in
September 2016. This segment recognized pre-tax losses of
$3.9 million in 4Q16. Such
losses include the unfavorable impact of $2.6 million related to the impact of loss
recognition on this closed block of long-term care business.
We expect this segment to report normalized earnings before net
realized investment gains (losses) of approximately breakeven over
the long-term, recognizing this segment's results can be volatile
given its loss recognition status.
Corporate Operations includes our investment advisory
subsidiary and corporate expenses.
Pre-tax losses in 4Q16 were $23.0
million compared to $.7
million of losses in 4Q15 primarily reflecting less
favorable investment returns and higher expenses. Investment
returns were $8 million lower in 4Q16
as compared to 4Q15 (including $4.7
million related to the change in value of investments
backing our Company-owned life insurance ("COLI") used as a vehicle
to fund Bankers Life's agent deferred compensation plan and the
impact of lower investment balances given the $200 million capital contribution in 3Q16 to our
insurance subsidiaries). Expenses were $14 million higher in 4Q16, reflecting
$7 million of higher legal costs
(including a $5.5 million increase to
legal reserves related to legacy business of our predecessor),
$2 million of adjustments to employee
benefit accruals and $4 million for
various initiatives (including costs incurred to comply with new
Department of Labor requirements).
Non-Operating Items
Net realized investment losses in 4Q16 were $14.8 million (net of related amortization)
including total other-than-temporary impairment losses of
$7.5 million recorded in earnings
($11.1 million, prior to the
$3.6 million of impairment losses
recognized in accumulated other comprehensive income). Net realized
investment losses in 4Q15 were $15.8
million (net of related amortization) including total
other-than-temporary impairment losses of $18.3 million recorded in earnings.
During 4Q16 and 4Q15, we recognized an increase in earnings of
$46.2 million and $14.6 million, respectively, resulting from
changes in the estimated fair value of embedded derivative
liabilities related to our fixed index annuities, net of related
amortization. Such amount includes the impacts of changes in
market interest rates used to determine the derivative's estimated
fair value.
During both 4Q16 and 4Q15, we recognized an increase in earnings
of $15.1 million for the
mark-to-market change in the agent deferred compensation plan
liability which was impacted by changes in the underlying actuarial
assumptions used to value the liability. We recognize the
mark-to-market change in the estimated value of this liability
through earnings as assumptions change.
As previously disclosed, we have reached a settlement with the
IRS related to the appropriate classification of the loss
recognized on our investment in Conseco Senior Health Insurance
Company when it was transferred to an independent trust in
2008. In addition, we have reached a settlement related to a
bad debt deduction with respect to a stock purchase loan made by
our Predecessor to a member of the Predecessor's board of
directors. The settlement resulted in the recognition of
additional life net operating loss carryforwards which offset
taxable income earned by our life insurance subsidiaries in the
third and fourth quarters of 2016 and the tax gain recognized on
the recapture of our long-term care reinsurance agreements.
The settlement resulted in a gain of $118.7
million in 4Q16.
In 4Q15, we reduced the valuation allowance for deferred tax
assets by $32.5 million primarily
related to higher actual and projected non-life income.
Statutory (based on non-GAAP measures) and GAAP Capital
Information
Our consolidated statutory risk-based capital ratio was
approximately 459% at December 31,
2016, reflecting 4Q16 and full year 2016 consolidated
statutory operating earnings of $124
million and $286 million,
respectively; capital contributions of $200.0 million made in 3Q16; and the payment of
insurance company dividends to the holding company of $274.3 million during 2016 (of which $98.5 million were paid in 4Q16). Such
risk-based capital ratio was 449% at December 31, 2015.
Unrestricted cash and investments held by our holding company
were $264 million at December 31, 2016, compared to $189 million at September
30, 2016, reflecting dividends from subsidiaries; partially
offset by common stock dividend payments.
As previously disclosed, in order to increase our excess
capital, we suspended our share repurchase program in 3Q16.
Accordingly, no shares were repurchased in 4Q16. During 2016,
we repurchased 11.7 million common shares at a total cost of
$203.0 million. CNO anticipates
repurchasing common stock in the range of $200 million to $275 million in 2017, absent
compelling alternatives. As of December 31, 2016, we had 173.8 million shares
outstanding and had authority to repurchase up to an additional
$252.7 million of our common
stock. During 4Q16, dividends paid on common stock totaled
$13.9 million.
Book value per common share was $25.82 and $22.49
at December 31, 2016 and 2015,
respectively. Book value per diluted share, excluding
accumulated other comprehensive income (loss) (3), increased to
$22.02 at December 31, 2016, compared to $20.05 at December 31,
2015.
The debt-to-total-capital ratio was 16.9 percent and 18.0
percent at December 31, 2016 and
2015, respectively. Our debt-to-total capital ratio,
excluding accumulated other comprehensive income (6) at
December 31, 2016, was 19.1 percent
compared to 19.6 percent at December 31,
2015.
Earnings and Outlook Conference Call
The Company will host a conference call to discuss results on
Wednesday, February 8, 2017 at
11:00 a.m. Eastern Time. The
webcast can be accessed through the Investors section of the
company's website: http://ir.CNOinc.com. Participants should
go to the website at least 15 minutes before the event to register
and download any necessary audio software. During the call,
we will be referring to a presentation that will be available the
morning of the call at the Investors section of the company's
website.
About CNO Financial Group
CNO Financial Group, Inc. (NYSE: CNO) is a holding
company. Our insurance subsidiaries - principally Bankers
Life and Casualty Company, Colonial Penn Life Insurance Company and
Washington National Insurance Company - primarily serve
middle-income pre-retiree and retired Americans by helping them
protect against financial adversity and provide for a more secure
retirement. For more information, visit CNO online at
www.CNOinc.com.
- Tables Follow -
|
CNO FINANCIAL
GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEET
(Dollars in
millions)
(unaudited)
|
|
|
December 31,
2016
|
|
December
31,
2015
|
|
ASSETS
|
|
|
|
|
Investments:
|
|
|
|
|
Fixed maturities,
available for sale, at fair value (amortized cost: 2016 -
$19,803.1; 2015 - $18,947.0)
|
$
|
21,096.2
|
|
|
$
|
19,882.9
|
|
|
Equity securities at
fair value (cost: 2016 - $580.7; 2015 - $447.4)
|
584.2
|
|
|
463.0
|
|
|
Mortgage
loans
|
1,768.0
|
|
|
1,721.0
|
|
|
Policy
loans
|
112.0
|
|
|
109.4
|
|
|
Trading
securities
|
363.4
|
|
|
262.1
|
|
|
Investments held by
variable interest entities
|
1,724.3
|
|
|
1,633.6
|
|
|
Other invested
assets
|
589.5
|
|
|
415.1
|
|
|
Total
investments
|
26,237.6
|
|
|
24,487.1
|
|
|
Cash and cash
equivalents - unrestricted
|
478.9
|
|
|
432.3
|
|
|
Cash and cash
equivalents held by variable interest entities
|
189.3
|
|
|
364.4
|
|
|
Accrued investment
income
|
239.6
|
|
|
237.0
|
|
|
Present value of
future profits
|
401.8
|
|
|
449.0
|
|
|
Deferred acquisition
costs
|
1,044.7
|
|
|
1,083.3
|
|
|
Reinsurance
receivables
|
2,260.4
|
|
|
2,859.3
|
|
|
Income tax assets,
net
|
789.7
|
|
|
898.8
|
|
|
Assets held in
separate accounts
|
4.7
|
|
|
4.7
|
|
|
Other
assets
|
328.5
|
|
|
309.2
|
|
|
Total
assets
|
$
|
31,975.2
|
|
|
$
|
31,125.1
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Liabilities for
insurance products:
|
|
|
|
|
Policyholder account
balances
|
$
|
10,912.7
|
|
|
$
|
10,762.3
|
|
|
Future policy
benefits
|
10,953.3
|
|
|
10,602.1
|
|
|
Liability for policy
and contract claims
|
500.6
|
|
|
487.8
|
|
|
Unearned and advanced
premiums
|
282.5
|
|
|
286.3
|
|
|
Liabilities related
to separate accounts
|
4.7
|
|
|
4.7
|
|
|
Other
liabilities
|
611.4
|
|
|
707.8
|
|
|
Investment
borrowings
|
1,647.4
|
|
|
1,548.1
|
|
|
Borrowings related to
variable interest entities
|
1,662.8
|
|
|
1,676.4
|
|
|
Notes payable –
direct corporate obligations
|
912.9
|
|
|
911.1
|
|
|
Total
liabilities
|
27,488.3
|
|
|
26,986.6
|
|
|
Commitments and
Contingencies
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Common stock ($0.01
par value, 8,000,000,000 shares authorized, shares issued and
outstanding: 2016 - 173,753,614; 2015 -
184,028,511)
|
1.7
|
|
|
1.8
|
|
|
Additional paid-in
capital
|
3,212.1
|
|
|
3,386.8
|
|
|
Accumulated other
comprehensive income
|
622.4
|
|
|
402.8
|
|
|
Retained
earnings
|
650.7
|
|
|
347.1
|
|
|
Total shareholders'
equity
|
4,486.9
|
|
|
4,138.5
|
|
|
Total liabilities and
shareholders' equity
|
$
|
31,975.2
|
|
|
$
|
31,125.1
|
|
|
CNO FINANCIAL
GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENT OF OPERATIONS
(Dollars in millions,
except per share data)
(unaudited)
|
|
|
Three months
ended
|
|
Year ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Insurance policy
income
|
$
|
654.1
|
|
|
$
|
638.8
|
|
|
$
|
2,601.1
|
|
|
$
|
2,556.0
|
|
|
Net investment
income:
|
|
|
|
|
|
|
|
|
General account
assets
|
315.6
|
|
|
303.2
|
|
|
1,204.1
|
|
|
1,203.6
|
|
|
Policyholder and
other special-purpose portfolios
|
38.4
|
|
|
29.2
|
|
|
121.1
|
|
|
30.0
|
|
|
Realized investment
gains (losses):
|
|
|
|
|
|
|
|
|
Net realized
investment gains (losses), excluding impairment losses
|
(7.5)
|
|
|
2.5
|
|
|
47.9
|
|
|
(8.0)
|
|
|
Other-than-temporary
impairments:
|
|
|
|
|
|
|
|
|
Total
other-than-temporary impairment losses
|
(11.1)
|
|
|
(18.3)
|
|
|
(35.9)
|
|
|
(42.9)
|
|
|
Portion of
other-than-temporary impairment losses recognized in accumulated
other comprehensive income
|
3.6
|
|
|
—
|
|
|
3.6
|
|
|
3.0
|
|
|
Net impairment losses
recognized
|
(7.5)
|
|
|
(18.3)
|
|
|
(32.3)
|
|
|
(39.9)
|
|
|
Gain (loss) on
dissolution of variable interest entities
|
—
|
|
|
—
|
|
|
(7.3)
|
|
|
11.3
|
|
|
Total realized gains
(losses)
|
(15.0)
|
|
|
(15.8)
|
|
|
8.3
|
|
|
(36.6)
|
|
|
Fee revenue and other
income
|
11.8
|
|
|
14.2
|
|
|
50.5
|
|
|
58.9
|
|
|
Total
revenues
|
1,004.9
|
|
|
969.6
|
|
|
3,985.1
|
|
|
3,811.9
|
|
|
Benefits and
expenses:
|
|
|
|
|
|
|
|
|
Insurance policy
benefits
|
529.3
|
|
|
551.9
|
|
|
2,390.5
|
|
|
2,308.3
|
|
|
Loss on reinsurance
transaction and transition expenses
|
—
|
|
|
—
|
|
|
75.4
|
|
|
9.0
|
|
|
Interest
expense
|
30.4
|
|
|
24.2
|
|
|
116.4
|
|
|
94.9
|
|
|
Amortization
|
71.7
|
|
|
64.4
|
|
|
253.3
|
|
|
260.0
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
32.8
|
|
|
Other operating costs
and expenses
|
192.8
|
|
|
168.8
|
|
|
796.3
|
|
|
739.2
|
|
|
Total benefits and
expenses
|
824.2
|
|
|
809.3
|
|
|
3,631.9
|
|
|
3,444.2
|
|
|
Income before income
taxes
|
180.7
|
|
|
160.3
|
|
|
353.2
|
|
|
367.7
|
|
|
Income tax expense
(benefit):
|
|
|
|
|
|
|
|
|
Tax expense on period
income
|
66.1
|
|
|
55.5
|
|
|
127.8
|
|
|
129.5
|
|
|
Valuation allowance
for deferred tax assets and other tax items
|
(119.6)
|
|
|
(32.5)
|
|
|
(132.8)
|
|
|
(32.5)
|
|
|
Net income
|
$
|
234.2
|
|
|
$
|
137.3
|
|
|
$
|
358.2
|
|
|
$
|
270.7
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
173,634,000
|
|
|
185,608,000
|
|
|
176,638,000
|
|
|
193,054,000
|
|
|
Net income
|
$
|
1.35
|
|
|
$
|
.74
|
|
|
$
|
2.03
|
|
|
$
|
1.40
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
175,173,000
|
|
|
187,951,000
|
|
|
178,323,000
|
|
|
195,166,000
|
|
|
Net income
|
$
|
1.34
|
|
|
$
|
.73
|
|
|
$
|
2.01
|
|
|
$
|
1.39
|
|
|
CNO FINANCIAL
GROUP, INC. AND SUBSIDIARIES
SEGMENT OPERATING
RESULTS
(Dollars in millions,
except per share data)
|
|
|
Year ended
|
|
December
31,
|
|
2016
|
|
2015
|
|
Adjusted EBIT
(4):
|
|
|
|
|
Bankers
Life
|
$
|
397.9
|
|
|
$
|
369.6
|
|
|
Washington
National
|
102.9
|
|
|
111.5
|
|
|
Colonial
Penn:
|
|
|
|
|
In-force business
(5)
|
54.4
|
|
|
53.6
|
|
|
New business
(5)
|
(52.7)
|
|
|
(48.0)
|
|
|
Total Colonial
Penn
|
1.7
|
|
|
5.6
|
|
|
Long-term care in
run-off
|
(3.9)
|
|
|
—
|
|
|
Adjusted EBIT from
business segments
|
498.6
|
|
|
486.7
|
|
|
Corporate Operations,
excluding corporate interest expense
|
(42.5)
|
|
|
(18.9)
|
|
|
Adjusted
EBIT
|
456.1
|
|
|
467.8
|
|
|
Corporate interest
expense
|
(45.8)
|
|
|
(45.0)
|
|
|
Operating earnings
before taxes
|
410.3
|
|
|
422.8
|
|
|
Tax expense on
operating income
|
147.8
|
|
|
148.1
|
|
|
Net operating income
(1)
|
262.5
|
|
|
274.7
|
|
|
Net realized
investment gains (losses) (net of related amortization)
|
7.6
|
|
|
(36.1)
|
|
|
Fair value changes in
embedded derivative liabilities (net of related
amortization)
|
9.6
|
|
|
11.9
|
|
|
Fair value changes
and amendment related to agent deferred compensation
plan
|
3.1
|
|
|
15.1
|
|
|
Loss on reinsurance
transaction
|
(75.4)
|
|
|
—
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
(32.8)
|
|
|
Other
|
(2.0)
|
|
|
(13.2)
|
|
|
Non-operating income
(loss) before taxes
|
(57.1)
|
|
|
(55.1)
|
|
|
Income tax expense
(benefit):
|
|
|
|
|
On non-operating
income (loss)
|
(20.0)
|
|
|
(18.6)
|
|
|
Valuation allowance
for deferred tax assets and other tax items
|
(132.8)
|
|
|
(32.5)
|
|
|
Net non-operating
income (loss)
|
95.7
|
|
|
(4.0)
|
|
|
Net income
|
$
|
358.2
|
|
|
$
|
270.7
|
|
|
|
|
|
|
Per diluted
share:
|
|
|
|
|
Net operating
income
|
$
|
1.47
|
|
|
$
|
1.41
|
|
|
Net realized
investment gains (losses) (net of related amortization and
taxes)
|
.03
|
|
|
(.12)
|
|
|
Fair value changes in
embedded derivative liabilities (net of related amortization and
taxes)
|
.04
|
|
|
.04
|
|
|
Fair value changes
and amendment related to agent deferred compensation plan (net of
taxes)
|
.01
|
|
|
.05
|
|
|
Loss on reinsurance
transaction (net of taxes)
|
(.27)
|
|
|
—
|
|
|
Loss on
extinguishment of debt (net of taxes)
|
—
|
|
|
(.11)
|
|
|
Valuation allowance
for deferred tax assets and other tax items
|
.74
|
|
|
.17
|
|
|
Other
|
(.01)
|
|
|
(.05)
|
|
|
Net income
|
$
|
2.01
|
|
|
$
|
1.39
|
|
|
CNO FINANCIAL
GROUP, INC. AND SUBSIDIARIES
NET OPERATING
INCOME EXCLUDING SIGNIFICANT ITEMS*
(Dollars in millions,
except per share data)
|
|
|
Three months
ended
|
|
December 31,
2015*
|
|
Actual
results
|
|
Significant
items
|
|
Excluding
significant items
|
|
Net Operating Income
(1):
|
|
|
|
|
|
|
Bankers
Life
|
$
|
121.2
|
|
|
$
|
(32.1)
|
|
|
$
|
89.1
|
|
|
Washington
National
|
32.3
|
|
|
(1.0)
|
|
|
31.3
|
|
|
Colonial
Penn
|
6.7
|
|
|
—
|
|
|
6.7
|
|
|
Adjusted
EBIT from business segments
|
160.2
|
|
|
(33.1)
|
|
|
127.1
|
|
|
Corporate Operations,
excluding corporate interest expense
|
(.7)
|
|
|
(4.2)
|
|
|
(4.9)
|
|
|
Adjusted EBIT
(4)
|
159.5
|
|
|
(37.3)
|
|
|
122.2
|
|
|
Corporate interest
expense
|
(11.3)
|
|
|
—
|
|
|
(11.3)
|
|
|
Operating earnings
before taxes
|
148.2
|
|
|
(37.3)
|
|
|
110.9
|
|
|
Tax expense on
operating income
|
51.2
|
|
|
(11.6)
|
|
|
39.6
|
|
|
Net operating
income
|
$
|
97.0
|
|
|
$
|
(25.7)
|
|
|
$
|
71.3
|
|
|
|
|
|
|
|
|
Net operating income
per diluted share
|
$
|
.52
|
|
|
$
|
(.14)
|
|
|
$
|
.38
|
|
* This table summarizes the financial impacts of
significant items (as described in the segment results section of
this press release) on our 4Q15 net operating income.
|
CNO FINANCIAL
GROUP, INC. AND SUBSIDIARIES
FIRST-YEAR
COLLECTED PREMIUMS
(Dollars in
millions)
|
|
Three months
ended
|
|
December
31,
|
|
2016
|
|
2015
|
|
Bankers
Life:
|
|
|
|
|
Medicare
supplement
|
$
|
19.3
|
|
|
$
|
20.6
|
|
|
Long-term
care
|
4.2
|
|
|
4.3
|
|
|
Supplemental
health
|
1.4
|
|
|
1.4
|
|
|
Other
health
|
.1
|
|
|
—
|
|
|
Life
|
33.7
|
|
|
38.5
|
|
|
Annuity
|
283.4
|
|
|
225.8
|
|
|
Total
|
342.1
|
|
|
290.6
|
|
|
Washington
National:
|
|
|
|
|
Supplemental health
and other health
|
17.7
|
|
|
18.6
|
|
|
Life
|
1.4
|
|
|
1.4
|
|
|
Annuity
|
.2
|
|
|
—
|
|
|
Total
|
19.3
|
|
|
20.0
|
|
|
Colonial
Penn:
|
|
|
|
|
Life
|
13.2
|
|
|
12.9
|
|
|
Total
|
13.2
|
|
|
12.9
|
|
|
Total first-year
collected premiums from segments
|
$
|
374.6
|
|
|
$
|
323.5
|
|
|
TOTAL COLLECTED
PREMIUMS
(Dollars in
millions)
|
|
|
Three months
ended
|
|
December
31,
|
|
2016
|
|
2015
|
|
Bankers
Life:
|
|
|
|
|
Medicare
supplement
|
$
|
191.2
|
|
|
$
|
192.6
|
|
|
Long-term
care
|
114.7
|
|
|
116.9
|
|
|
Supplemental
health
|
5.5
|
|
|
4.9
|
|
|
Other
health
|
1.5
|
|
|
1.7
|
|
|
Life
|
113.8
|
|
|
110.7
|
|
|
Annuity
|
284.9
|
|
|
227.7
|
|
|
Total
|
711.6
|
|
|
654.5
|
|
|
Washington
National:
|
|
|
|
|
Supplemental health
and other health
|
142.1
|
|
|
138.1
|
|
|
Medicare
supplement
|
14.9
|
|
|
17.9
|
|
|
Life
|
7.7
|
|
|
7.1
|
|
|
Annuity
|
.5
|
|
|
.5
|
|
|
Total
|
165.2
|
|
|
163.6
|
|
|
Colonial
Penn:
|
|
|
|
|
Life
|
69.2
|
|
|
65.2
|
|
|
Medicare supplement
and other health
|
.6
|
|
|
.8
|
|
|
Total
|
69.8
|
|
|
66.0
|
|
|
Long-term care in
run-off:
|
|
|
|
|
Long-term
care
|
4.7
|
|
|
N/A
|
|
|
Total
|
4.7
|
|
|
N/A
|
|
|
Total collected
premiums from segments
|
$
|
951.3
|
|
|
$
|
884.1
|
|
|
CNO FINANCIAL
GROUP, INC. AND SUBSIDIARIES
NEW ANNUALIZED
PREMIUMS (2)
(Dollars in
millions)
|
|
|
Three months
ended
|
|
December
31,
|
|
2016
|
|
2015
|
|
Bankers
Life:
|
|
|
|
|
Medicare
supplement
|
$
|
23.9
|
|
|
$
|
27.6
|
|
|
Long-term
care
|
5.5
|
|
|
6.7
|
|
|
Supplemental
health
|
1.6
|
|
|
1.6
|
|
|
Life
|
17.0
|
|
|
19.6
|
|
|
Annuity
|
17.0
|
|
|
13.6
|
|
|
Total
|
65.0
|
|
|
69.1
|
|
|
Washington
National:
|
|
|
|
|
Supplemental
health
|
25.2
|
|
|
24.1
|
|
|
Life
|
1.8
|
|
|
2.2
|
|
|
Total
|
27.0
|
|
|
26.3
|
|
|
Colonial
Penn:
|
|
|
|
|
Life
|
14.7
|
|
|
15.6
|
|
|
Total
|
14.7
|
|
|
15.6
|
|
|
Total new annualized
premiums
|
$
|
106.7
|
|
|
$
|
111.0
|
|
|
BENEFIT RATIOS ON
MAJOR HEALTH LINES OF BUSINESS
|
|
|
Three months
ended
|
|
December
31,
|
|
2016
|
|
2015
|
|
Bankers
Life:
|
|
|
|
|
Medicare
Supplement:
|
|
|
|
|
Earned
premium
|
$193
million
|
|
$192
million
|
|
Benefit ratio
(7)
|
71.2
|
%
|
|
70.8
|
%
|
|
Long-term
care:
|
|
|
|
|
Earned
premium
|
$118
million
|
|
$119
million
|
|
Benefit ratio
(7)
|
134.7
|
%
|
|
137.1
|
%
|
|
Interest-adjusted
benefit ratio (a non-GAAP measure) (8)
|
76.0
|
%
|
|
79.6
|
%
|
|
Washington
National:
|
|
|
|
|
Medicare
Supplement:
|
|
|
|
|
Earned
premium
|
$15
million
|
|
$17
million
|
|
Benefit ratio
(7)
|
64.8
|
%
|
|
63.8
|
%
|
|
Supplemental
health:
|
|
|
|
|
Earned
premium
|
$144
million
|
|
$138
million
|
|
Benefit ratio
(7)
|
81.0
|
%
|
|
81.8
|
%
|
|
Interest-adjusted
benefit ratio (a non-GAAP measure) (8)
|
57.0
|
%
|
|
57.5
|
%
|
|
Long-term care in
run-off:
|
|
|
|
|
Long-term
care:
|
|
|
|
|
Earned
premium
|
$5 million
|
|
N/A
|
|
Benefit ratio
(7)
|
365.8
|
%
|
|
N/A
|
|
Interest-adjusted
benefit ratio (a non-GAAP measure) (8)
|
213.5
|
%
|
|
N/A
|
NOTES
|
(1)
|
Management believes
that an analysis of Net income applicable to common stock before:
(i) net realized investment gains or losses, net of related
amortization and taxes; (ii) fair value changes due to fluctuations
in the interest rates used to discount embedded derivative
liabilities related to our fixed index annuities, net of related
amortization and taxes; (iii) fair value changes and amendment
related to the agent deferred compensation plan, net of taxes, (iv)
loss on reinsurance transaction, net of taxes; (v) loss on
extinguishment of debt, net of taxes; (vi) changes in the valuation
allowance for deferred tax assets and other tax items; and (vii)
other non-operating items consisting primarily of equity in
earnings of certain non-strategic investments and earnings
attributable to variable interest entities, net of taxes ("Net
operating income," a non-GAAP financial measure) is important to
evaluate the financial performance of the company, and is a key
measure commonly used in the life insurance industry.
Management uses this measure to evaluate performance because the
items excluded from net operating income can be affected by events
that are unrelated to the company's underlying fundamentals.
Net realized investment gains or losses include: (i) gains or
losses on the sales of investments; (ii) other-than-temporary
impairments recognized through net income; and (iii) changes in
fair value of certain fixed maturity investments with embedded
derivatives. A reconciliation of Net operating income to Net
income applicable to common stock is provided in the tables on
pages 2 and 9. Additional information concerning this
non-GAAP measure is included in our periodic filings with the
Securities and Exchange Commission that are available in the
"Investors - SEC Filings" section of CNO's website,
www.CNOinc.com.
|
|
(2)
|
Measured by new
annualized premium, which includes 6% of annuity and 10% of single
premium whole life deposits and 100% of all other premiums.
Medicare Advantage sales are not comparable to other sales and are
therefore excluded in all periods.
|
|
(3)
|
Book value per
diluted share reflects the potential dilution that could occur if
outstanding stock options were exercised, restricted stock and
performance units were vested and convertible securities were
converted. The dilution from options, restricted shares and
performance units is calculated using the treasury stock
method. Under this method, we assume the proceeds from the
exercise of the options (or the unrecognized compensation expense
with respect to restricted stock and performance units) will be
used to purchase shares of our common stock at the closing market
price on the last day of the period. The dilution from
convertible securities is calculated assuming the securities were
converted on the last day of the period. In addition, the
calculation of this non-GAAP measure differs from the corresponding
GAAP measure because accumulated other comprehensive income (loss)
has been excluded from the value of capital used to determine this
measure. Management believes this non-GAAP measure is useful
because it removes the volatility that arises from changes in the
unrealized appreciation (depreciation) of our
investments.
|
|
(4)
|
Management believes
that an analysis of earnings before net realized investment gains
(losses), fair value changes due to fluctuations in the interest
rates used to discount embedded derivative liabilities related to
our fixed index annuities, fair value changes and amendment related
to the agent deferred compensation plan, loss on reinsurance
transaction, loss on extinguishment of debt, other non-operating
items, corporate interest expense and taxes ("Adjusted EBIT," a
non-GAAP financial measure) provides a clearer comparison of the
operating results of the company quarter-over-quarter because these
items are unrelated to the company's underlying fundamentals.
A reconciliation of Adjusted EBIT to Net Income applicable to
common stock is provided in the tables on pages 2 and 9.
|
|
(5)
|
Management believes
that an analysis of Adjusted EBIT for Colonial Penn, separated
between in-force and new business, provides increased clarity for
this segment as the vast majority of the costs to generate new
business in this segment are not deferrable and Adjusted EBIT will
fluctuate based on management's decisions on how much marketing
costs to incur in each period. Adjusted EBIT from new
business includes pre-tax revenues and expenses associated with new
sales of our insurance products during the first year after the
sale is completed. Adjusted EBIT from in-force business
includes all pre-tax revenues and expenses associated with sales of
insurance products that were completed more than one year before
the end of the reporting period. The allocation of certain
revenues and expenses between new and in-force business is based on
estimates, which we believe are reasonable.
|
|
(6)
|
The calculation of
this non-GAAP measure differs from the corresponding GAAP measure
because accumulated other comprehensive income (loss) has been
excluded from the value of capital used to determine this
measure. Management believes this non-GAAP measure is useful
because it removes the volatility that arises from changes in the
unrealized appreciation (depreciation) of our
investments.
|
|
(7)
|
The benefit ratio is
calculated by dividing the related product's insurance policy
benefits by insurance policy income.
|
|
(8)
|
The interest-adjusted
benefit ratio (a non-GAAP measure) is calculated by dividing the
product's insurance policy benefits less imputed interest income on
the accumulated assets backing the insurance liabilities by
insurance policy income. Interest income is an important
factor in measuring the performance of longer duration health
products. The net cash flows generally cause an accumulation
of amounts in the early years of a policy (accounted for as reserve
increases), which will be paid out as benefits in later policy
years (accounted for as reserve decreases). Accordingly, as
the policies age, the benefit ratio will typically increase, but
the increase in the change in reserve will be partially offset by
the imputed interest income earned on the accumulated assets.
The interest-adjusted benefit ratio reflects the effects of such
interest income offset (which is equal to the tabular interest on
the related insurance liabilities). Since interest income is
an important factor in measuring the performance of these products,
management believes a benefit ratio, which includes the effect of
interest income, is useful in analyzing product performance.
Additional information concerning this non-GAAP measure is included
in our periodic filings with the Securities and Exchange Commission
that are available in the "Investors - SEC Filings" section of CNO
Financial's website, www.CNOinc.com.
|
Cautionary Statement Regarding Forward-Looking
Statements. Our statements, trend analyses
and other information contained in this press release relative to
markets for CNO Financial's products and trends in CNO Financial's
operations or financial results, as well as other statements,
contain forward-looking statements within the meaning of the
federal securities laws and the Private Securities Litigation
Reform Act of 1995. Forward-looking statements typically are
identified by the use of terms such as "anticipate," "believe,"
"plan," "estimate," "expect," "project," "intend," "may," "will,"
"would," "contemplate," "possible," "attempt," "seek," "should,"
"could," "goal," "target," "on track," "comfortable with,"
"optimistic," "guidance," "outlook" and similar words, although
some forward-looking statements are expressed differently. You
should consider statements that contain these words carefully
because they describe our expectations, plans, strategies and goals
and our beliefs concerning future business conditions, our results
of operations, financial position, and our business outlook or they
state other ''forward-looking'' information based on currently
available information. Assumptions and other important factors that
could cause our actual results to differ materially from those
anticipated in our forward-looking statements include, among other
things: (i) changes in or sustained low interest rates causing
reductions in investment income, the margins of our fixed annuity
and life insurance businesses, and sales of, and demand for, our
products; (ii) expectations of lower future investment earnings may
cause us to accelerate amortization, write down the balance of
insurance acquisition costs or establish additional liabilities for
insurance products; (iii) general economic, market and political
conditions, including the performance and fluctuations of the
financial markets which may affect the value of our investments as
well as our ability to raise capital or refinance existing
indebtedness and the cost of doing so; (iv) the ultimate outcome of
lawsuits filed against us and other legal and regulatory
proceedings to which we are subject; (v) our ability to make
anticipated changes to certain non-guaranteed elements of our life
insurance products; (vi) our ability to obtain adequate and timely
rate increases on our health products, including our long-term care
business; (vii) the receipt of any required regulatory approvals
for dividend and surplus debenture interest payments from our
insurance subsidiaries; (viii) mortality, morbidity, the increased
cost and usage of health care services, persistency, the adequacy
of our previous reserve estimates and other factors which may
affect the profitability of our insurance products; (ix) changes in
our assumptions related to deferred acquisition costs or the
present value of future profits; (x) the recoverability of our
deferred tax assets and the effect of potential ownership changes
and tax rate changes on their value; (xi) our assumption that the
positions we take on our tax return filings will not be
successfully challenged by the Internal Revenue Service; (xii)
changes in accounting principles and the interpretation thereof;
(xiii) our ability to continue to satisfy the financial ratio and
balance requirements and other covenants of our debt agreements;
(xiv) our ability to achieve anticipated expense reductions and
levels of operational efficiencies including improvements in claims
adjudication and continued automation and rationalization of
operating systems, (xv) performance and valuation of our
investments, including the impact of realized losses (including
other-than-temporary impairment charges); (xvi) our ability to
identify products and markets in which we can compete effectively
against competitors with greater market share, higher ratings,
greater financial resources and stronger brand recognition; (xvii)
our ability to generate sufficient liquidity to meet our debt
service obligations and other cash needs; (xviii) our ability to
maintain effective controls over financial reporting; (xix) our
ability to continue to recruit and retain productive agents and
distribution partners; (xx) customer response to new products,
distribution channels and marketing initiatives; (xxi) our ability
to achieve additional upgrades of the financial strength ratings of
CNO Financial and our insurance company subsidiaries as well as the
impact of our ratings on our business, our ability to access
capital and the cost of capital; (xxii) regulatory changes or
actions, including those relating to regulation of the financial
affairs of our insurance companies, such as the payment of
dividends and surplus debenture interest to us, regulation of the
sale, underwriting and pricing of products, and health care
regulation affecting health insurance products; (xxiii) changes in
the Federal income tax laws and regulations which may affect or
eliminate the relative tax advantages of some of our products or
affect the value of our deferred tax assets; (xxiv) availability
and effectiveness of reinsurance arrangements, as well as the
impact of any defaults or failure of reinsurers to perform; (xxv)
the performance of third party service providers and potential
difficulties arising from outsourcing arrangements; (xxvi) the
growth rate of sales, collected premiums, annuity deposits and
assets; (xxvii) interruption in telecommunication, information
technology or other operational systems or failure to maintain the
security, confidentiality or privacy of sensitive data on such
systems; (xxviii) events of terrorism, cyber attacks, natural
disasters or other catastrophic events, including losses from a
disease pandemic; (xxix) ineffectiveness of risk management
policies and procedures in identifying, monitoring and managing
risks; and (xxx) the risk factors or uncertainties listed from time
to time in our filings with the Securities and Exchange Commission.
Other factors and assumptions not identified above are also
relevant to the forward-looking statements, and if they prove
incorrect, could also cause actual results to differ materially
from those projected. All written or oral forward-looking
statements attributable to us are expressly qualified in their
entirety by the foregoing cautionary statement. Our forward-looking
statements speak only as of the date made. We assume no obligation
to update or to publicly announce the results of any revisions to
any of the forward-looking statements to reflect actual results,
future events or developments, changes in assumptions or changes in
other factors affecting the forward looking statements.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cno-financial-group-reports-fourth-quarter-and-full-year-2016-results-300403623.html
SOURCE CNO Financial Group, Inc.